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EU Proposes EUR600 Million In Financial Aid For Ukraine, Bosnia

BRUSSELS -(Dow Jones)- The European Commission Friday proposed lending Ukraine up to EUR500 million and Bosnia-Herzegovina up to EUR100 million to help the countries implement restructuring agreements reached with the International Monetary Fund.

The loans will be financed by European Union borrowing in the financial markets, the commission said. Ukraine and Bosnia-Herzegovina must follow programs agreed to with the IMF to receive the full amounts.

The global economic crisis has pummeled the two countries' economies, prompting the IMF to loan $16.5 billion to Ukraine and $1.5 billion to Bosnia- Herzegovina as private investors have fled the countries.

The proposals must be approved by EU national governments at the European Council.

The commission is the EU's executive arm.

-By Matthew Dalton, Dow Jones Newswires; +32 2 741 1487; matthew.dalton@ dowjones.com

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